MILAN (Reuters) - Italian gas grid company Snam has launched a 33 million euro ($40 million) tender to convert its car fleet to natural gas in a sign of its commitment to develop gas fuelling stations in the country.

The move comes as utilities across Europe race to embrace the fast-growing business of rolling out charging stations to meet carmaker pledges to move fleets to electric drives.

Snam, controlled by state lender CDP, said in a tender it had set a Feb. 16 deadline for bids from European companies to convert its 1,500 vehicle fleet to natural gas.